I thought I had read all the ‘white-washing’ there was to read up until yesterday.  This hilarious article in The Telegraph refers to ‘economists telling the British public’ that Deflation can be known as Joyflation!  Yes, it’s true that the cycle of Deflation that always proceeds Hyper-inflation is always designed to try to get the average consumer to release their money back into the economy. But history proves time and again that the public aren’t fooled.  The consumer does not trust what they are being told about recovery, so they save and retain their spare currency – hopefully converting it into the ‘real’ money of Physical Gold and Silver.

This lack of trust in the ‘official voice’ by the general population is a classic sign of being in the Sixth stage of the Seven Stages of Empires.  

Stage 6: This debasement in currency is sensed by the general population. A loss of faith in government and currency occurs. 
Stage 7: An end mass-movement out of the fiat currency into precious metals, causing end of paper currency and hyper-inflation.

So it is of no surprise that ‘economists’ would re-title the period of “Deflation” we have now entered in the UK, Eurozone and US particularly as ‘joyflation’.  That is a too-obvious attempt to falsely woo the general population into parting with their earnings to bolster the economy.

But I never assumed the attempt to persuade would be so funny.   Deflation can NEVER be described as Joyflation. Because of what always follows.  For more on this topic please see a recent blog by Bleyer on what Deflation really is.

“While people living in other countries’ are used to suffering from economic “deflation” and even “stagflation”, Britons are about to get a dose of ‘joyflation'”.

“This is the term coined by Oxford Economics to describe the combination of the oil-driven slowdown in inflation and accelerating economic growth.  The news could be good news for David Cameron, the Prime Minister, as he tours the country trying to persuade Britons to vote Conservative in May.  Inflation is expected to have dipped below one per cent in December when official figures are published on Tuesday, triggering a letter of explanation from Bank of England governor Mark Carney to Chancellor George Osborne.  However Scott Livermore, managing director of macro forecasting at Oxford Economics, said it would be a cause for celebration for the country’s leaders.  He said: “It’s an uplift that counters some of the pessimism from the end of last year. From a UK perspective, the fall in oil comes at a very good time.”  

The article concludes with one of the funniest things I’ve read in the markets for a while: “Mr Livermore told Bloomberg that he expected inflation to become negative between next month and April alongside the falling oil price. However he said that this would be a form of “good deflation” because cheaper energy boosts the spending power of consumers and companies.”

Good Deflation?  That’s like a contradiction in terms.  Like a good hole in the head.  There is only one kind.  And it always leads to hyper-inflation where Physical Gold and Silver hold their value while paper currencies do not.

Mr Livermore’s statements to Bloomberg are all the more entertaining because on the same day, Bloomberg ran a small financial piece on the forthcoming rise in Gold (and therefore Silver) prices due to the impending and long overdue Greek exit from the Euro.  But you had to look carefully to find it.

“Gold futures rose to an 11-week high on speculation that Greece will abandon the euro, boosting the precious metal’s appeal as a haven asset. Silver climbed to a one-month high.”

This could be interpreted as a nod to those in the know to position themselves well in Physical now. How Greek’s existence in the Euro has stretched out so long I do not know. I have family working for the British Government in Greece and the Greek employment and local governmental situation is beyond dire on the ground. But we at Bleyer see this elongated period of stable Gold Prices as an extended buying opportunity to acculmulate or enter the Physical Metals market.  If you do not own any Physical Gold or Silver, we recommend you ring the Bleyer team for a no pressure chat.  We appreciate it can be a daunting thought for many of our now-clients to make that first telephone call. Gold and Silver feel like a market for only the big boys or as something out of a Bond movie. But nothing could be further from the historical truth.  We have lived through the last 40 years as a credit and currency generation, so we only tend to think of ‘money’ as paper.  But go back before that and our grandparents all knew the value of owning Gold and Silver, whether that was in sovereigns, eagles, a silver tea service or heirloom jewellery.  Premiums on jewellery make that the least profitable way to hold some gold and silver. We recommend holding bullion coins and bars. The advantages are:

  • Up to 98% buy back value on the Gold and Silver content
  • Small bars and coins are highly transportable
  • You can buy in a variety of sizes and values for easy release of capital later on
  • Bullion bars and coins are recognisable the world over

For larger amounts we offer secure storage either on mainland UK or off-shore, together with a variety of home-safe options to purchase.  We also offer the ability to hold Gold in a UK Pension with some great TAX advantages:

“If you are a UK citizen, you can invest in Gold Bullion through your Self-Invested Personal Pensions (SIPPS). SIPPS are personal pension schemes containing a basket of investments of your choosing until you retire and start to draw a pension income. SIPPs can hold tangible investments, which can now include Physical Gold. Investments made in gold bullion are topped up in the form of tax relief, meaning individuals can claim back the tax on the money they put in. The amount varies depending on the income tax band into which they fall, so if you are a higher rate tax payer you can get up to 40% back. So, for example, a £10,000 investment will only cost you £6,000.”  See our Pensions page for more details and call one of the team to discuss your bespoke needs.

Call Bleyer now on 01769 618618.